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A Tool Provider is a 3rd party tool that implements the LTI protocol.
Tool Providers and LTI

LTI provides the seamless integration of externally hosted web-based Learning Tools. If the LTI Tool Provider is already configured, links can be created to the available Tool Providers. If you have been in contact with the Tool Provider directly, a key, secret, or a block of configuration XML may have been supplied which can now be entered.